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Appraisers offer insights on deciding whether or not to sell a valued item or collection
Fact checked by Shannon Sparks
Life moves quickly, and we often don’t realize how much we’ve accumulated. What started as just one item — a book or a coin, art or a stamp — can grow into a full collection. You may have inherited some pieces and gathered others by your own volition. But what happens when it’s time to part with them?
Deciding whether to keep or sell, figuring out what type of appraiser you need, determining the value of your items, and navigating complex issues like tax and insurance may seem overwhelming.However, understanding the worth of any collection is crucial for making informed decisions about its future.
Love or let go
People may need to sell their collections for various reasons. They may encounter unexpected expenses and need money to cover them. They may be downsizing their home. Or a loved one may have passed away, leaving family to sort through their belongings.
Deciding to keep or sell an item or collection can be the most challenging part. While appraisers focus strictly on financial value, it’s important to consider an item’s personal, emotional, or historical significance, too.
“Our relationship to the things in our life is more than financial,” says Kurt Soucek, owner and lead appraiser of Adams Appraisal. “Determine what you love and want to live with, ask your family what items they might want, and let the rest go. Many families spend thousands of dollars to keep items in storage for extended periods rather than make the difficult decisions around what to part with and what to cherish.”
Factors including current market value and potential for appreciation play a part. “If an item is appreciating or has significant historical or emotional importance, it might be worth holding onto,” says Alicia Weaver, president of appraisals at Prestige Estate Services. “Conversely, if the item no longer holds personal value or if market conditions are favorable, selling could be a viable option.”
Finding the right appraiser
First, determine whether your items have financial value by finding a qualified appraiser through a reputable organization such as the International Society of Appraisers, the American Society of Appraisers, or the Appraisers Association of America. “Using directories from these organizations can help you locate an expert in your region,” Weaver says.
Weaver also suggests seeking referrals from legal or financial professionals with a strong track record in appraising specific types of items, ensuring they comply with the Uniform Standards of Professional Appraisal Practice, and are members of the aforementioned organizations.
If you have multiple types of items that need appraising, many appraisers are generalists who work with a wide variety of art, collectibles, and furnishings. However, Soucek says, “if your estate contains a significant collection that’s expected to be at high value — such as jewelry, books, Asian or pre-Columbian art, or A-list fine art — ask if your appraiser is versed to appraise those specific items.” If they’re not, they will typically refer you to someone who is.
Where to sell
Once you’ve determined to part ways with your collection and know its potential value, there are several ways to sell, including auction houses, private sales, and online marketplaces. Each option has its own set of pros and cons.
Auction houses can fetch higher prices if there’s competitive bidding — especially for rare or unique pieces. But auction-house fees can be high, and there’s no guarantee of a sale,” Weaver says.
Soucek says that finding an auction house or estate sale company is easy, but only if you have a large quantity of high-value items. “The higher the value, the more important the venue,” he says. In order to sell a multi-million-dollar Picasso for its highest value, he adds, “A-list auction houses will thoroughly research and vet the item, and stand behind its authenticity for years after the sale.”
Weaver adds that private sales allow for more negotiation and potentially higher net returns by avoiding auction-house fees. “However, it may take longer to find a buyer, and private sales require more effort to market the item,” Weaver says.
For an entire home of inventory, an estate sale may be the best option. “Estate sale companies will liquidate everything from vehicles, antiques, and furniture to home wares and half open bottles of Windex,” Weaver says, adding, “Make sure that any company you work with is bonded and insured, has workman’s comp insurance, and can provide current client referrals.”
If you’re selling just a few items or the typical contents of a home, many people turn to online marketplaces, such as Facebook. These platforms provide access to a larger audience and charge little to no fees. Still, Weaver says, “There are also risks involved, such as potential scams and the possibility of receiving lower offers than what you might expect at a reputable auction house.”
Another option is to donate your item or collection to a museum or even a nonprofit resale shop. You can then deduct the appraised value of the item from your taxes.
Losses and gains
When selling high-value collectibles, consider capital gains tax, as profits from these sales may be taxable. “Keep records of the purchase, any appraisals associated with the estate tax, and speak with an accountant or your attorney about potential liabilities,” Soucek says. “Inherited items should have values updated to reflect current values, or you may risk paying capital gains based on the original purchase price rather than the value at time of inheritance.”
It’s also important that your valuable items are properly insured during the sales process. Without adequate coverage, you risk financial loss if items are damaged or lost. “This can become particularly complicated if the inventory or records of the items are too vague, as it leaves the replacement of lost items up to a lot of opinion and discretion,” Weaver says.
It’s essential to keep your appraisals up-to-date, especially as market conditions change and values fluctuate. “This isn’t an inexpensive process, but once you have an appraisal established, you can update it every few years,” Weaver says.
Those regular appraisals help protect your investment, as well as, potentially, your future and your peace of mind.
Official Appraiser Societies
International Society of Appraisers isa-appraisers.org
American Society of Appraisers appraisers.org
Appraisers Association of America appraisersassociation.org
